Over Christmas, I was gifted AUD$85 worth of shares in an ASX-listed company called Santana Minerals. My grandfather gifted me the shares in the form of a Sharesies gift, which I then used to buy 100 shares through my personal account.
When I received the gift from my grandfather, it had a note attached to it. Amongst other things, he said the shares are speculative — in the future they could be worth something, or be worthless. Either way, he thought it would be a fun experience to follow. He said it would be interesting to follow the shares, and one day visit one of the mining sites in Central Otago.
This is my first experience investing in an individual company, as I have only previously invested in ETFs. I learned that investing in individual companies comes with a few risks, including: the company going bankrupt, getting involved in a scandal, causing an environmental disaster, or simply losing interest from investors.
Since I have never owned shares in an individual company before, I now feel that I should do some research on the mining project. I went online and found that Santana Minerals Ltd is an Australia-based nickel and precious metals explorer. I had a quick look at their website, which contained sections including: Announcements; Reports & News; Share Price; and Presentations. I also searched Santana Minerals on Google News, and read the coverage about their different mining projects. Their website also has some information on the Bendigo-Ophir project, a gold project located in Central Otago, New Zealand.
I googled whether gold mining is environmentally friendly and found many differing opinions, some saying that it’s one of the most destructive industries in the world, and others saying the opposite. The Bendigo-Ophir project states: “Our vision is to develop the Bendigo-Ophir project into a world class, long life, environmentally sustainable mining project that will bring generational employment and prosperity to the Bendigo Region.” This shows that they are aiming to be environmentally friendly. For now I think that there is still a lot to learn before I can form an opinion on the project.
The process of buying the shares was relatively easy. First, my grandfather bought a Sharesies gift card worth $85, and then he shared the code with me. Once I received the gift card I bought 100 shares (worth around $85 at the time).
When I first purchased the shares on 9 January, they were valued at $0.68 each. At their peak on 14 February, their worth increased to $0.91 each, resulting in a gain of around AUD$25, and my hopes were high. As of now (20 April), they have slightly dropped to $0.80; however, this price is still higher than my initial purchase, yielding a 4.66% return. I remain invested in the journey and hope that the share price continues its upward trend.
I plan to follow Santana Mineral’s journey by tracking my Sharesies, and I’ll keep an eye out for any news reports. I’m sure I’ll also be able to ask my grandfather for any updates in the future.
Jordan is a high school student in Dunedin, New Zealand. He loves writing across a range of genres, from zombie fiction to articles about financial literacy. Outside of school, Jordan is happiest on a cricket field, in a forest photographing fungi or playing video games with his friends and younger brother.